Investor Briefing RIGHT S O L U T I O N S RIGHT PARTNER. Singapore & United Kingdom April Greg Kilmister - CEO

Transcription

1 Investor Briefing Singapore & United Kingdom April 2013 Greg Kilmister - CEO RIGHT S O L U T I O N S RIGHT PARTNER

2 IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by ALS Limited, (ALS or the Company). It contains general information about the Company s activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions. This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, securities in any jurisdiction. Neither this document nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This presentation includes forward-looking statements within the meaning of securities laws. Any forwardlooking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary materially from any projections and forward-looking statements. Due care and attention should be undertaken when considering and analysing the financial performance of the Company. All references to dollars are to Australian currency unless otherwise stated. 2

3 ALS Company History Soap & Chemical Company Established Listed on ASX Modern Era ALS Limited Today Market Capitalization AUD$3.5 billion Fourth largest public listed TIC company in the world ASX 100 participant (Sept 2011) Annual Revenues +AUD$1.4 billion 12,000 Staff Operations in 56 countries on 6 continents Conservative Funding 28% gearing Commitment to technical excellence 3

4 Last Financial Release September 2012 Half Year half year H1 FY12 (AUD$m) H2 FY12 (AUD$m) H1 FY13 (AUD$m) Revenue EBITDA EBITDA 1,2 from continuing operations Gain on sale of discontinued operations Impairment - - (6.1) EBIT NPAT EPS (basic cents per share) Dividend (cents per share) Excludes gain on sale of discontinued operations and impairment loss 2 EBITDA from continuing operations post the sale of the Chemical Division (Deltrex and Panamex) 4

5 Revenue (AUD$mn) Revenue Growth ALS (laboratories) Revenue Growth Organic Growth 15% Acquired Growth 12% Currency Impact 0% Reported Growth 27% Revenue Growth H Vs H Industrial Energy Life Sciences Minerals -5% 0% 5% 10% 15% 20% 25% 30% 35% Organic Acquired FX Movement 5

6 ALS Divisional Structure Four Global Divisions Ten Business Streams 7% 13% 49% 31% Revenue 2012 AUD$1.2 billion Strategy 20% 33% 14% 33% Revenue 2017 AUD$2.0 billion 6

7 Global Diversification & Technical Leadership >12,000 staff >$1.3 billion revenue 56 countries +20 million samples/year 9 service lines >300 laboratories 7

8 ALS - laboratory revenue & staff distribution 15% 29% 20% 4% 24% 10% 5% 7% Revenue >$1.3 billion 10% 10% 40% 26% Staff 11,000 8

9 Revenue ($ million) Revenue ($ million) 9 Diversification & Consistent Growth , Financial Year ending March SECTOR MINERALS LIFE SCIENCES ENERGY INDUSTRIAL % 33% 13% 47% 0 Financial Year ending March

10 ALS Revenue AUD$ million EBITDA Margin Revenue Growth + Margin Strength 1,500 Core Labs 35% 1,200 30% ALS % 600 SGS Intertek Bureau Veritas 20% 300 Eurofins 15% ALS Financial Year Ending March 10% ALS EBITDA Margin ALS Revenue EBITDA Margin for Core Labs, SGS, Intertek, Bureau Veritas & Eurofins is for Calendar Year 2012 actual. EBITDA Margin & Revenue for ALS excludes non-laboratory businesses but does include all corporate expenses. Data for Financial Year ending March 2013 based on current guidance. 10

11 EBITDA Margin Operating EBITDA Margin by Division 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% FY2009 FY2010 FY2011 FY2012 H1 FY2013 Minerals Life Sciences Energy Industrial EBITDA margins exclude ALS Limited Corporate Costs

12 AUD$ million CAPEX (excluding properties) and Depreciation CAPEX increased to accelerate expansion of non-geochemistry businesses and upgrade more recent acquisitions to improve margins Capex (excl properties) Depreciation 12 12

13 AUD $million Conservative Funding Mar-09 Mar-10 Mar-11 Mar-12 Jan-13 Statistics Gearing Ratio Comfort 45% 33.7% 18.9% 11.9% 28.5% 28.8% Leverage (net debt / EBITDA) Max EBITDA interest cover Min Balance Sheet Measures Total Equity Net debt % (Weighted average maturity: 6.15 years) % 18.3% 21.3% Long term Debt - USPP Notes Bank Debt - Undrawn Capacity % 4.6% Bank Debt Drawn Facility Maturity 13

14 What makes us different Assets State of the art laboratories High end technical services Unique service offerings Operating Model Hub and spoke Centres of Excellence Systems and standards Decentralised laboratory Vs many laboratories People Training Passion Culture Loyalty Communication Strategy Long-term horizon Focus Execution 14

15 What makes us different Management Information Systems (MIS) LIMS GEMS Geochemical Coal8 Coal EnviroLIMS Environmental SAM Tribology ELMS Food OSPrey Asset Care Webview Management Interface WebTrieve TM Other Portals ilead training EPC succession planning Compliance Financial TM1 CAPEX Safety Tracking Human Resources Business stream Sharepoint sites Support group Sharepoint sites 15

16 World Exploration Trends (excl. iron ore & coal) - Data from Metals Economic Group Report December Gold 23 year history Copper 24 year history Zinc 24 year history 16

17 ALS Geochemistry Revenue CY % 90% 80% 33% 70% 60% 50% 24% 40% greenfield 30% 20% 10% 43% brownfield 0% North America South America Africa Australia Europe Asia Total Majors Intermediates Juniors 50% of all geochemistry work comes from existing mining operations